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Commercial areas in a
city A city is a human settlement of notable size.Goodall, B. (1987) ''The Penguin Dictionary of Human Geography''. London: Penguin.Kuper, A. and Kuper, J., eds (1996) ''The Social Science Encyclopedia''. 2nd edition. London: Routledge. It can be def ...
are areas, districts, or
neighborhoods A neighbourhood (British English, Irish English, Australian English and Canadian English) or neighborhood (American English; American and British English spelling differences, see spelling differences) is a geographically localised community ...
primarily composed of
commercial Commercial may refer to: * a dose of advertising conveyed through media (such as - for example - radio or television) ** Radio advertisement ** Television advertisement * (adjective for:) commerce, a system of voluntary exchange of products and s ...
buildings, such as a
strip mall A strip mall, strip center or strip plaza is a type of shopping center common in North America where the stores are arranged in a row, with a sidewalk in front. Strip malls are typically developed as a unit and have large parking lots in front. ...
, office parks,
downtown ''Downtown'' is a term primarily used in North America by English speakers to refer to a city's sometimes commercial, cultural and often the historical, political and geographic heart. It is often synonymous with its central business distric ...
,
central business district A central business district (CBD) is the commercial and business centre of a city. It contains commercial space and offices, and in larger cities will often be described as a financial district. Geographically, it often coincides with the "city ...
,
financial district A financial district is usually a central area in a city where financial services firms such as banks, insurance companies and other related finance corporations have their head offices. In major cities, financial districts are often home to s ...
, " Main Street", or
shopping centers A shopping center (American English) or shopping centre (Commonwealth English), also called a shopping complex, shopping arcade, shopping plaza or galleria, is a group of shops built together, sometimes under one roof. The first known collec ...
. Commercial activity within cities includes the buying and selling of goods and services in
retail Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and t ...
businesses,
wholesale Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional or other professional business users; or to other wholesalers (wholesale businesses) and related subordinated services. In ...
buying and selling, financial establishments, and a wide variety of uses that are broadly classified as "business." While commercial activities typically take up a relatively small amount of land, they are extremely important to a community's
economy An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the ...
. They provide
employment Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any othe ...
, facilitate the circulation of money, and often serve many other roles important to the community, such as public gathering and cultural events. A commercial area is real estate intended for use by for-profit businesses, such as office complexes, shopping malls, service stations, bars and restaurants. It may be purchased outright by a developer for future projects or leased through a real estate broker. This type of property falls somewhere between residential and industrial property. Practically every incomer must grant permission to build a new office complex or other profit-making business, the city government must determine that the chosen area is indeed commercial area. If the zones which separate commercial, industrial, and residential area are clearly zoned for commercial use, the city will allow the sale to proceed for the stated use. If any part of the property extends into a residential or industrial zone, however, then the buyer must seek a 'variance', special permission to cross over a zone boundary. A commercial area can be held by real estate agents who treat it the same as residential areas. Signs advertising the availability and size of the real estate can be erected, and arrangements can be made to buy or lease smaller lots. Sellers may also agree to make improvements to the land, such as grading off uneven spots or clearing out unwanted trees. A professional developer may purchase huge swatches of this type of property simply to guarantee its availability for later projects.


History

The workplace grew up in tandem with the city, which by the late 19th century was often perceived as polluted, congested and riven by social and economic strife. Although the city continued its rise until the mid-20th century, the forces that would spell its decline had been gathering steam over many decades. Commuter rail, streetcars and eventually the automobile allowed a widening segment of residents to move out of city centers. While at first most people commuted back to industrial and commercial jobs downtown, eventually many employers followed suit, moving to suburban communities in search of educated workers, cheap land, fewer unions and a leafy suburban image. The now-familiar commercial landscape of office parks and corporate campuses was born.


Zoning laws

Cities often use
zoning laws Zoning is a method of urban planning in which a municipality or other tier of government divides land into areas called zones, each of which has a set of regulations for new development that differs from other zones. Zones may be defined for a si ...
to prevent conflicts between residential homeowners and businesses. Land designated as a commercial area is rarely located in the middle of residential zones. City planners encourage businesses to congregate along busier streets and central downtown areas. This helps to keep traffic to these sites manageable. Some areas of the city may be designated for 'mixed usage', which means some commercial areas may be used for residential purposes. A quaint downtown shopping area with apartments would be an example of mixed usage. Commercial areas definition may include industrial usage as well, although zoning laws still regulate the level of industry permitted. Heavier industries often purchase property on the fringes of cities or in unincorporated areas. Some commercial zones in the city do allow for light industrial usage, usually smaller factories with minimal emissions and transportation needs. Some examples of commercial area buildings are: *
Arena An arena is a large enclosed platform, often circular or oval-shaped, designed to showcase theatre, musical performances, or sporting events. It is composed of a large open space surrounded on most or all sides by tiered seating for spectators ...
*
Auditorium An auditorium is a room built to enable an audience to hear and watch performances. For movie theatres, the number of auditoria (or auditoriums) is expressed as the number of screens. Auditoria can be found in entertainment venues, community ...
*
Bank A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because ...
*
Chain store A chain store or retail chain is a retail outlet in which several locations share a brand, central management and standardized business practices. They have come to dominate the retail and dining markets and many service categories, in many pa ...
*
Gas station A filling station, also known as a gas station () or petrol station (), is a facility that sells fuel and engine lubricants for motor vehicles. The most common fuels sold in the 2010s were gasoline (or petrol) and diesel fuel. Gasoline ...
*
Grocery store A grocery store ( AE), grocery shop ( BE) or simply grocery is a store that primarily retails a general range of food products, which may be fresh or packaged. In everyday U.S. usage, however, "grocery store" is a synonym for supermarket, a ...
*
Hotel A hotel is an establishment that provides paid lodging on a short-term basis. Facilities provided inside a hotel room may range from a modest-quality mattress in a small room to large suites with bigger, higher-quality beds, a dresser, a ref ...
*
Movie theater A movie theater (American English), cinema (British English), or cinema hall ( Indian English), also known as a movie house, picture house, the movies, the pictures, picture theater, the silver screen, the big screen, or simply theater is a ...
*
Office An office is a space where an Organization, organization's employees perform Business administration, administrative Work (human activity), work in order to support and realize objects and Goals, plans, action theory, goals of the organizati ...
*
Pharmacy Pharmacy is the science and practice of discovering, producing, preparing, dispensing, reviewing and monitoring medications, aiming to ensure the safe, effective, and affordable use of medicines. It is a miscellaneous science as it links heal ...
*
Restaurant A restaurant is a business that prepares and serves food and drinks to customers. Meals are generally served and eaten on the premises, but many restaurants also offer take-out and food delivery services. Restaurants vary greatly in appearan ...
* Shophouse *
Shopping mall A shopping mall (or simply mall) is a North American term for a large indoor shopping center, usually anchored by department stores. The term "mall" originally meant a pedestrian promenade with shops along it (that is, the term was used to refe ...
* Car Dealer *
Discount stores A discount store or discounter offers a retail format in which products are sold at prices that are in principle lower than an actual or supposed "full retail price". Discounters rely on bulk purchasing and efficient distribution to keep down cos ...
*
Warehouse clubs A warehouse club (or wholesale club) is a retail store, usually selling a wide variety of merchandise, in which customers may buy large, wholesale quantities of the store's products, which makes these clubs attractive to both bargain hunters ...


Different kinds of commercial areas

The Neighbourhood Commercial 1 (CN1) zone is intended for small sites in or near dense residential neighbourhoods. The zone encourages the provision of small-scale retail and service uses for nearby residential areas. Some uses which are not retail or service in nature are also allowed so a variety of uses may locate in existing buildings. Uses are restricted in size to promote a local orientation and to limit adverse impacts on nearby residential areas. Development is intended to be pedestrian-oriented and compatible with the scale of surrounding residential areas. Parking areas are restricted, since their appearance is generally out of character with the surrounding residential development and the desired orientation of the uses. The Neighbourhood Commercial 2 (CN2) zone is intended for small commercial sites and areas in or near less dense or developing residential neighbourhoods. The emphasis of the zone is on uses which will provide services for the nearby residential areas, and on other uses which are small-scale and have little impact. Uses are limited in intensity to promote their local orientation and to limit adverse impacts on nearby residential areas. Development is expected to be predominantly auto accommodating, except where the site is adjacent to a transit street or in a Pedestrian District. The development standards reflect that the site will generally be surrounded by more spread out residential development. The Office Commercial 1 (CO1) zone is used on small sites in or near residential areas or between residential and commercial areas. The zone is intended to be a low intensity office zone that allows for small-scale offices in or adjacent to residential neighbourhoods. The allowed uses are intended to serve nearby neighbourhoods and/or have few detrimental impacts on the neighbourhood. Development is intended to be of a scale and character similar to nearby residential development to promote compatibility with the surrounding area. Development should be oriented to pedestrians along transit streets and in Pedestrian Districts.


Leasing commercial areas

Leasing commercial office space is one of the largest expenses incurred by new and expanding businesses, so it is important to do your due diligence. Here are some tips for negotiating a commercial lease for your small business.


Lease agreement

Lease term and rent are your first negotiation points. It is generally recommended that small businesses negotiate one- to two-year leases with the option to renew. You will also want to factor in rent increases over the term and renewal options so you are not charged with an unexpected rent increase without warning. Consider working with a broker to help you negotiate with the landlord. It is also important to consult a knowledgeable real estate lawyer; they can often recommend the right choice for you and protect your interests as you negotiate your lease through the broker. In commercial leases the expiration date of the lease can be extremely harsh, but through trial and error courts in the United States have created exceptions to relieve some anxieties. Commercial tenants may now use an "honest mistake" or an "inadvertence" to disregard the timely renewal of their lease. The non-renewal of the lease can also now result in forfeiture of the property to the tenant.


References


External links

* {{DEFAULTSORT:Commercial Area Planning Urban studies and planning terminology